Statutory & Payroll

Standing Orders

Standing orders are certified conditions of service that bind an establishment once certified, and they override inconsistent contractual terms for the workers they cover. Where an establishment is required to have them, adopting the model orders or obtaining certification is not optional, and a disciplinary process that departs from certified standing orders will not stand.

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Standing Orders

Conditions of service for workers — draft for certification

Standing orders are certified conditions of service that bind an establishment once certified, and they override inconsistent contractual terms for the workers they cover. Where an establishment is required to have them, adopting the model orders or obtaining certification is not optional, and a disciplinary process that departs from certified standing orders will not stand.

ItemDetail
Establishment[COMPANY NAME], [ADDRESS]
Registration number[NUMBER]
Nature of the establishment[DESCRIBE]
Number of workers employed[NUMBER]
Applicability threshold met on[DATE]
Status[Draft submitted for certification on ______ / Certified on ______ / Model standing orders adopted]
Certifying officer[DESIGNATION AND OFFICE]
Effective from[DATE]
Displayed at[LOCATIONS], in English and in [LANGUAGE]

1. Application

1.1These standing orders apply to all workers employed in the establishment, and to the extent they are inconsistent with any contract of employment, these standing orders prevail in respect of the workers they cover.

1.2These standing orders do not apply to a person employed mainly in a managerial or administrative capacity, or in a supervisory capacity drawing wages above the prescribed threshold, whose conditions of service are governed by the contract of employment.

1.3Matters not provided for in these standing orders are governed by applicable law and by the contract of employment.

2. Classification of Workers

2.1Workers are classified as:

ClassMeaning
PermanentA worker who has completed the probationary period satisfactorily and has been confirmed in writing, or who has been engaged on a permanent basis
ProbationerA worker provisionally employed to fill a permanent vacancy and who has not completed the probationary period of [NUMBER] months, extendable once by [NUMBER] months by written notice stating the reason
Fixed-termA worker engaged on the basis of a written contract for a fixed period, entitled to hours of work, wages, allowances and other benefits not less than those of a permanent worker doing the same or similar work, and to statutory benefits in proportion to the period of service
TemporaryA worker engaged for work of an essentially temporary nature likely to be completed within a limited period
CasualA worker engaged on a casual basis
ApprenticeA learner engaged under the applicable apprenticeship framework
SubstituteA worker engaged in the place of a permanent worker or probationer temporarily absent
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Notes for use

These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.

Certified standing orders override the contract

Once certified, standing orders govern the conditions of service of the workers they cover, and a term in an individual contract inconsistent with them does not prevail. That is why Clause 1.1 states it and why step 10 of the checklist requires contracts to be reviewed. An establishment operating a disciplinary process under its handbook, while certified standing orders say something different, is following the wrong document.

Check applicability, and check it again as you grow

The obligation arises when the number of workers employed reaches the prescribed threshold. A growing establishment crosses it without noticing, and the obligation to submit draft standing orders for certification runs from that point. Track headcount against the threshold rather than assuming the position is unchanged from incorporation.

Model orders or your own

An establishment may adopt the model standing orders, in which case they are deemed certified, or may submit its own draft for certification. Adopting the model set is faster and removes the certification process; drafting your own allows the classification of workers, the notice periods and the disciplinary procedure to be tailored. Decide deliberately at step 2 rather than defaulting.

The disciplinary procedure is the operative part

Clause 8 is what a tribunal will examine when a dismissal is challenged. Specific charges, an independent Inquiry Officer, the right to be assisted, the right to cross-examine, a recorded proceeding, a reasoned report, a copy of that report given before the penalty is decided, proportionality, and an appeal. Terminations are set aside on these points far more often than on the merits of the allegation.

Charges must be specific

A charge sheet alleging misconduct in general terms, without dates, particulars and the standing order alleged to have been breached, cannot be answered and cannot support a finding. It must also be in a language the worker understands — a charge sheet in English served on a worker who does not read English is a procedural defect.

Sexual harassment goes to the Internal Committee

Clauses 7.1(k) and 8.10 route it correctly. The inquiry must be conducted by the Internal Committee constituted under the applicable legislation, following its own procedure and timelines, and the standing orders operate only to give effect to the penalty recommended. Conducting a domestic inquiry under the standing orders instead is a serious error.

Suspension is not a penalty

A worker suspended pending inquiry remains employed and is entitled to a subsistence allowance at the prescribed rate. Suspension used as a punishment, or prolonged while the inquiry goes nowhere, is itself challengeable. Clause 8.8 states both points.

Fixed-term workers are entitled to parity

A fixed-term worker must receive hours, wages, allowances and benefits not less than a permanent worker doing the same or similar work, and statutory benefits in proportion to service. Clause 2.3 also prohibits using fixed-term engagement to deny permanency. Successive renewals for work of a permanent nature is the practice this addresses.

Two working days, and no withholding of the certificate

Clauses 3.6 and 6.6 together close the most common exit dispute. Wages must be paid within two working days of termination, and the certificate of service must not be withheld to compel a settlement or to enforce a notice period.

Overtime at twice the ordinary rate

Clause 3.4 states the statutory position. Establishments that pay a flat allowance for extra hours, or that treat all workers as exempt, carry an accruing exposure. Authorise overtime in advance and record hours.

Display and language

Certified standing orders must be prominently displayed in English and in the language understood by the majority of workers, and furnished on request. This is checked on inspection and is trivially easy to comply with, yet is one of the most frequent findings.

Modification requires certification too

Standing orders cannot be amended by internal decision. Any modification follows the prescribed procedure for modification and certification. An establishment that revises its handbook and assumes the standing orders have moved with it has two documents saying different things.

Verify your State’s position

The applicability threshold, the model standing orders, the prescribed matters, the subsistence allowance rate and the certification procedure are all affected by rules notified separately by each State, and the position is not uniform. Confirm the requirements for the State in which the establishment is situated before submitting.

Current as of

Reflects Indian law current as of {{DATE OF USE}}. Thresholds, model orders, prescribed matters and certification procedure change — have the draft settled by an employment adviser before submission for certification.

This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, company secretary, or chartered accountant as relevant) before you rely on it.